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Intangible assets | 12 Months Ended
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Dec. 31, 2017
Text block1 [abstract] |
Intangible assets | 16. Intangible assets
|  |  |  |  | Other intangibles assets |  |  |  |
|  | Goodwill |  |  | License and software rights |  |  | Intangible in process |  |  | Total |
Cost - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2015 |  | $ | 20,380 |  |  | $ | 37,663 |  |  | $ | 24,474 |  |  | $ | 82,517 |
Additions |  |  | — |  |  |  | 121 |  |  |  | 19,297 |  |  |  | 19,418 |
Disposals |  |  | — |  |  |  | (65 | ) |  |  | — |  |  |  | (65 | )
Reclassifications |  |  | — |  |  |  | 26,090 |  |  |  | (26,090 | ) |  |  | — |
Balance at December 31, 2015 |  |  | 20,380 |  |  |  | 63,809 |  |  |  | 17,681 |  |  |  | 101,870 |
Additions |  |  | — |  |  |  | 73 |  |  |  | 14,401 |  |  |  | 14,474 |
Disposals |  |  | — |  |  |  | (1,546 | ) |  |  | — |  |  |  | (1,546 | )
Impairment loss |  |  | — |  |  |  | — |  |  |  | (5,931 | ) |  |  | (5,931 | )
Reclassifications |  |  | — |  |  |  | 11,813 |  |  |  | (10,073 | ) |  |  | 1,740 |
Balance at December 31, 2016 |  |  | 20,380 |  |  |  | 74,149 |  |  |  | 16,078 |  |  |  | 110,607 |
Additions |  |  | — |  |  |  | 1,783 |  |  |  | 16,898 |  |  |  | 18,681 |
Disposals |  |  | — |  |  |  | (4,891 | ) |  |  | — |  |  |  | (4,891 | )
Reclassifications |  |  | — |  |  |  | 3,642 |  |  |  | (2,085 | ) |  |  | 1,557 |
Balance at December 31, 2017 |  |  | 20,380 |  |  |  | 74,683 |  |  |  | 30,891 |  |  |  | 125,954 |
Amortization - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2015 |  | $ | — |  |  | $ | (25,222 | ) |  | $ | — |  |  | $ | (25,222 | )
Amortization for the year |  |  | — |  |  |  | (7,287 | ) |  |  | — |  |  |  | (7,287 | )
Disposals |  |  | — |  |  |  | 65 |  |  |  | — |  |  |  | 65 |
Balance at December 31, 2015 |  |  | — |  |  |  | (32,444 | ) |  |  | — |  |  |  | (32,444 | )
Amortization for the year |  |  | — |  |  |  | (10,207 | ) |  |  | — |  |  |  | (10,207 | )
Disposals |  |  | — |  |  |  | 1,546 |  |  |  | — |  |  |  | 1,546 |
Balance at December 31, 2016 |  |  | — |  |  |  | (41,105 | ) |  |  | — |  |  |  | (41,105 | )
Amortization for the year |  |  | — |  |  |  | (8,628 | ) |  |  | — |  |  |  | (8,628 | )
Disposals |  |  | — |  |  |  | 4,894 |  |  |  | — |  |  |  | 4,894 |
Balance at December 31, 2017 |  |  | — |  |  |  | (44,839 | ) |  |  | — |  |  |  | (44,839 | )
Carrying amounts - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At December 31, 2015 |  | $ | 20,380 |  |  | $ | 31,365 |  |  | $ | 17,681 |  |  | $ | 69,426 |
At December 31, 2016 |  | $ | 20,380 |  |  | $ | 33,044 |  |  | $ | 16,078 |  |  | $ | 69,502 |
At December 31, 2017 |  | $ | 20,380 |  |  | $ | 29,844 |  |  | $ | 30,891 |  |  | $ | 81,115 |
Goodwill The Company performed its annual impairment test in September 2017 and the recoverable amount was estimated at $4.4 billion (2016: $3.5 billion), an amount far in excess of the $20.4 million of goodwill recorded. The cash flows beyond the five-year period are extrapolated using a 3.1% growth rate. It was concluded that no impairment charge is necessary since the estimated recoverable amount of the CGU exceed its carrying value by approximately 92%. Key assumptions used in value in use calculations The calculations of value in use of the CGU are sensitive to the following main assumptions:
| • |  | Revenue – the Company calculated the projected passenger revenue based on the current beliefs, expectations, and projections about future events and financial trends affecting its business.
| • |  | Cash flows - determination of the terminal value is based on the present value of the Company’s cash flows in perpetuity. When estimating the cash flows for use in the residual value calculation, it is essential to clearly define the normalized cash flows level, the appropriate discount rate for the degree of risk inherent in that return stream, and a constant future growth rate for the related cash flows. To estimate the value, the Gordon Growth Model was used.
| • |  | Discount rates – The selected pre-tax rate of 12.92% represents the current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segment and is derived from its pre-tax weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company’s investors. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available market data.
Sensitivity to changes in assumptions
| • |  | The Company estimated that a reduction to 11.5% or an increase to 13.5% in the discount rate would not cause the carrying amounts to exceed the recoverable amount.
Other intangible assets Intangible assets in process During 2016, the Company evaluated the recoverability of the development cost generated in a project in process related to some systems; as a result of this evaluation, the Company recognized an impairment of $5.9 million of incurred cost that will no longer generate probable future economic benefits. Intangible assets in process as of December 31, 2017 and 2016 mainly comprise improvements to the tickets reservation system, and other operational system. During 2016, the Company capitalized an $11.8 million of a new operating and administrative systems and other program for ConnectMiles.

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- Definition The entire disclosure for intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2017-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=38&date=2017-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2017-03-09 + Details
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